Hon Nua island in the southern central coastal province of Phu Yen. The province has recently withdrawn an authorisation granted to Varella Co., Ltd to construct Hon Nua island eco-tourism site because it has not been implemented as planned. — Photo thanhnien.com.vn

PHU YEN (Biz Hub) — The People's Committee in the central coast province of Phu Yen has announced that the authorisation granted to two foreign direct investment (FDI) tourism projects are being withdrawn.

The Vnexpress online newspaper reported that the committee took the decision because the projects, namely the Hon Nua island eco-tourism site and the hotels and tourist area in Tuy Hoa City, were not being implemented as planned. The investor in both projects is Varella Co., Ltd.

While the province reportedly asked the investor to implement the projects several times and also warned about the risk of withdrawal of authorisation, the company did not take any action.

The People's Committee will transfer the company's deposit of US$124,807 for the Hon Nua island eco-tourism site to the State budget. This project, which received an investment certificate in March 2008, had a total investment of $37.5 million, while another one, which received an investment certificate in October 2009, had an investment capital of $11 million.

This year, Phu Yen has withdrawn the authorisation granted to five investment projects with a total registered capital of nearly VND1,600 billion ($76.1 million) for the same reasons. According to the provincial authorities, economic slowdown reduced the investment flow in the first seven months of 2014. Meanwhile, the province has given investment certificates to nine projects with a total registered capital of more than VND630 billion ($30 million). — VNS